Saudi PIF boosts investments in 2018 - Year in review

Saudi PIF boosts investments in 2018 - Year in review
The PIF’s new investments are part of the kingdom’s Vision 2030

By: Mahmoud Salah El-Din

Riyadh – Mubasher: Saudi Arabia’s sovereign investor Public Investment Fund (PIF) has stepped up its expansions this year by implementing transactions with various local and global investors.

The Saudi sovereign wealth fund’s (PIF) new investments are part of the kingdom’s Vision 2030 that aims to diversify economic resources away from oil revenues and invest more heavily in infrastructure.

Accorinvest

In March, AccorHotels signed contracts with a number of investors including the PIF to sell a 55% stake in its subsidiary AccorInvest at a value of $5.4 billion (EUR 4.4 billion).

Saudi Arabia’s PIF, Singapore’s GIC Pte sovereign-wealth fund, Credit Agricole Assurances, Amundi SA, Colony NorthStar Inc. and other investors had joined forces to acquire the majority stake in AccorInvest's property business.

Magic Leap

The GCC nation investment’s arm unveiled in March plans to invest around $400 million in Magic Leap as a part of its international schemes to raise its footprint across the globe.

Solar Power Plan

Saudi Crown Prince Mohammed bin Salman inked in March a memorandum of understanding (MoU) with Japan-based SoftBank Group Corp’s Vision Fund to build the world’s largest solar power firm in the oil-rich kingdom.

The Vision Fund Apple and Foxconn would pump investments into a Saudi company to generate solar-powered electricity in the OPEC powerhouse.

Recreation Sector

In April, the PIF noted that its wholly-owned unit, Development and Investment Entertainment Company, signed an agreement with AMC’s cinemas in Saudi Arabia to establish about 30 to 40 cinemas in 15 Saudi cities over the next five years.

On a related note, the Saudi fund signed a contract with the US-based recreation firm Six Flags to open a theme park in the kingdom.

Andrew Liveris’ Appointment  

The PIF’s management appointed Andrew Liveris as a special adviser, in addition to becoming an adviser to Crown Prince Mohammed bin Salman.

The PIF’s 1st facility

In September, the PIF raised an $11 billion loan from banks to allocate it to finance its activities.

The world’s largest sovereign wealth fund would pay a margin of 75 basis points over the London Interbank Offered Rate for the loan

Lucid Motors

The Saudi investment body inked a deal in September at a value of as much as $1 billion to manufacture electric vehicles (EVs) under the name (Lucid Air).

 

Translated by: Mohammad Hesham Azab